All Forum Posts by: Todd Anderson

Markus,  I agree with what many others have said.  

I think the most important thing that you had in your Cons is location.  The investors that I work with that invest out of their area are most concerned in the projected area appreciation.  If you invest into an area that has strong growth and good employment numbers it can overcome many other Cons.  This will make the property appreciation obvious.  

there are many properties that you can make work but if the area is not growing you are going to miss out on one of the most important money makers in Real Estate, Appreciation.  

There are too many good markets to invest in poor markets.   

Henry,  this question would depend how you buy the new construction.  As most strategies it also depends on your investing goals.  

The investors that I work with have found that there is a way to purchase New construction without most of the risk and time it takes to build.  They let the builder take on the construction financing and just are able to come in with the end financing.  With this proses the investors I work with are also able to take advantage of some great incentives including solving for the biggest problem in the field, interest rates.

The investors I work with also appreciate a turn key process on Single fam up to Quads and larger community development.  

connect if you would like to talk about investing goals or see an off market inventory.

Caleigh,  Welcome to BP and real estate investing.  

I think you are having good thoughts about your first property. I to would highly recommend to anyone in your situation to house hack in a good growing market. When I talk with the investors I work with That have used this plan they find if they are buying right in a good appreciating market with conventional financing they are able to drop the PMI after the first year. You can ask the lender to reappraise the property and if you are at the 20% equity you can ask to drop the PMI. This lets the investors that I work with have a property that cashflows as soon as they move out.

You could then do that with the next property.  I have worked with a number of investors in the Charlotte market that have done this exact strategy. 

Connect with me and I can help you with a list of off market properties that may work for you.

Best of luck Khalid, and welcome to BP.   It's great that you give some info on your project.  That is a big lift for your first project.  I hope it all goes to plan.  

I have done a few development projects for myself and it seems that in every one you hit a bump and wonder why.  I found working with investors from around the country it is much easer and safer to let builders do what they do best and I will stay on the investment side.  

Please keep us updated on the process and completion.  Having a new building to rent out or sell the units will be the nice part after the construction is done.  

@Joe Ferguson,   Welcome to real estate investing.  

I totally agree with Eric, for your first deal look to something with as low risk as you can.  Development in the best situation carries a ton of risk.  Development also takes a lot of time to get to cashflow.  

There is still a good amount of risk with BRRRR but if you are owner occupying the property you are in a much better place. I would recommend to all first time investors to "House Hack" for there first and maybe even second deal. you will learn a lot from being your own tenant.

Best of luck on your Real Estate Journey.  

Antonio, Take your time and look around at areas.  There are a number of choices even on this thread.  If you are looking to build a portfolios and are looking to have the properties managed then you can really choose from anywhere in the country.

When I talk with investors looking at following this type of strategy, they look for areas that the growth is obvious.  This way they get the best chance for appreciation.  We focus on markets that the new construction is solid and the population has a strong track record of growth.  Many of the markets I recommend, that we have off market inventory in, are in the top growing areas in the country. 

With that part said, then look to have cashflow in this volatile market.  Buying a property that cashflows day one is important when the market direction is unclear.  This will give you the ability to weather and bumps along the way.  The investors I work with also look to New Construction because then they can minimize any surprises that may come along.  

With that said, then find a market that is and will be landlord friendly.  Look to areas that the laws are changing in the right direction.  

Let me know if you would like to connect and chat about what we can offer investors.  

Ramatu,  You might want to look at a duplex.  You can get owner occupies financing on this type of property for 5% down.  I work  with investors that are staring their investment journey this way and they find that they can get control of a great property for a small down payment.  Stay there a year and check out the area,  then a year later you can look for your end move and have a two units that will cash flow for you.

Let me know if you would like to talk about this or look at some of our off market inventory.

Eli,  I can definitely help.  I work with investors interested in the same strategy that you are looking at.  We have tried to solve for some of the problems that come with new construction.  I have worked with investors in Florida and North Carolina, to find new builds that are from 1-3 months from completion.  This makes sure that you don't have to get construction financing and can be Cash flowing as soon as you close.  

The investors that we work with are looking for a turn key solution to new construction investing.

Let me know if you would be interested in talking about our off market inventory. 

@Vhernadette Sasing, I would agree with the others that have mentioned that you find a Turnkey provider that can take care of you through the proses.  The investors that I work with in your situation like the option of going with New Construction, because there is less maintenance and surprises.  

With owing a property you can take advantage of the tax benefits of owning Real Estate.  When you couple this with the appreciation of buying in a growing markets, and the Cashflow day one of a property bought with great incentives.  The investors that I work with value that we act as their boots on the ground for the transaction and normally use the equity gain to buy the next property.  

Let me know if I can get you more information

Rod,  Welcome to BP!

I have been in Florida helping investors find their next investment for over a year now, and have worked with many investors who think this is the place to invest.  There are definitely better markets than others around the state.  I tend to recommend some of the secondary markets to the investors that I work with where the growth is obvious and the properties still cashflow.  

Best of luck in your journey and  please connect if you want to talk about investing goals.